Spotlight: InCommercial Property Group and Its Gas Station Motor Fuel Funds
The Chicago sponsor buys gas stations and convenience stores through sale-leasebacks, and an affiliate of the firm operates convenience stores of its own.
November 13, 2026
InCommercial Property Group is a Chicago real estate investment firm that buys net-leased gas station and convenience store properties and offers them to accredited investors through private funds and a Delaware statutory trust. The firm was founded by Erik Conrad, its CEO, and according to its website draws on a 25-year history as commercial real estate brokers, investors and managers. InCommercial co-invests alongside the investors in its offerings, which include annual Motor Fuel Funds built around bonus depreciation, a DST for 1031 exchange investors, and a credit fund that lends against gas station and convenience store real estate.
Scale and an Affiliated Operator
The firm's website currently lists $653 million in assets under management, $328 million in equity raised, 219 properties owned and 290 properties managed. Alongside its investment offerings, InCommercial provides investment sales, 1031 exchange, financing and property management services. It also has an affiliated convenience store operating company, InConvenience Inc., which the firm says gives it operational insight alongside its real estate ownership.
Motor Fuel Funds and Bonus Depreciation
The Motor Fuel Funds buy gas station and convenience store properties that qualify as retail motor fuel outlets under the Internal Revenue Code, a classification that may allow accelerated depreciation. Properties are acquired mainly through sale-leaseback transactions with established operators and placed on long-term triple-net leases.
Motor Fuel Fund IV, a $75 million offering launched in March 2025, had closed by January 2026. According to the firm, it deployed about $120 million across 20 retail motor fuel properties in Texas. Its successor, Motor Fuel Fund V, launched in January 2026 seeking $100 million in equity commitments. Fund V combines net-lease income with bonus depreciation on properties bought with debt, which the firm describes as a way to improve investors' after-tax results, subject to individual tax circumstances, and it is targeting 60% to 80% loan-to-value financing. It is a Rule 506(c) offering with a $100,000 minimum investment, according to its Form D filing, which lists JCC Capital Markets as the broker-dealer receiving sales compensation.
Dan Mercer Jr., the firm's head of capital markets, has said the strategy is drawing investors with failed or broken 1031 exchanges, real estate professionals looking to offset active income, and sellers who have trouble replacing leverage in a new exchange.
A Credit Fund on the Same Collateral
InCommercial High Yield Income Fund, launched in June 2025, originates short-term bridge and mezzanine loans secured by triple-net leased properties. The loans support the acquisition, refinancing and operation of gas station and convenience store properties. The fund targets a 10% annualized return, made up of an 8% preferred distribution and 2% profit participation.
InCommercial RMF DST
InCommercial RMF DST, launched in July 2025, was the firm's first DST, offered as a 1031 exchange option alongside the annual funds. It holds four gas station and convenience store properties in the Houston area carrying the Shell, Valero, Sunoco and 76 fuel brands. Each property is on a 20-year absolute net lease with an established regional operator, and the portfolio is supported by a master lease with an InCommercial affiliate. The offering was all cash, with a 6% starting yield and a $50,000 minimum investment. In May 2026 the firm announced that the DST was fully subscribed at nearly $18.2 million, with 16 broker-dealers and registered investment advisers participating.
